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AGL Resources Inc. Jan 12
Standard & Poors, Jan 2012
Abstract
Highly stable regulated utility operations generate about 70% of consolidated operating profit. The utility operations have a large, geographically diverse residential and commercial customer base. We expect the more volatile nonregulated businesses will grow at a measured pace. AGL's wholesale trading and marketing business, Sequent, has inherently volatile cash flows and requires diligent risk management to ensure its derivative exposure is properly managed. Pro forma for Nicor, the company will expand to Illinois, a jurisdiction we consider more challenging, and acquire a volatile Caribbean-based shipping company. Significant financial leverage. Atlanta-based AGL Resources Inc.'s rating reflects an 'excellent' business risk profile and a 'significant' financial risk profile (as our criteria define the terms). With monopolistic regulated utility operations generating the majority...
Companies mentioned in this report are: AGL Resources Inc.,Atlanta Gas Light Co.,Pivotal Utility Holdings,Nicor Gas Co.,AGL Capital Corp.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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